Tokyo – (News agencies): Crude oil prices hit their highest level in more than seven years yesterday Tuesday was driven by supply turmoil, severe geopolitical tension and growing demand despite the spread of the mutant Omicron.
And yesterday, a barrel of Brent oil, the reference North Sea, was being traded at a price of 87.60 dollars, after it jumped to Earlier $88.13. It slightly exceeded its level in October 2014 (86.74 dollars) in the morning in Asia, a day after He reached his level in October 2018. And
The price of a barrel of West Texas Intermediate crude in futures contracts reached 85.25 dollars, after it reached 85. $74 in Asian trading, the highest level since October 2014. Experts say that there are several factors behind this new rise in oil prices, especially the cessation of oil prices In production in «Libya, Nigeria, Angola, Ecuador and more recently in Canada due to severe frosts» According to Hussain Syed, an analyst at Xiniti. For his part, Walid Kodmani, an analyst at XTP, said, “The markets are still… Focused on the delicate balance between supply and demand that appears to have a significant impact on price fluctuations Throughout the post-pandemic economic recovery period. And
Geopolitical tensions are added to the equation, and this is in several regions of the world at the same time, from the Gulf to… to Ukraine. And last Monday, the Yemeni Houthi rebels claimed an attack in Abu Dhabi that resulted in the explosion of fuel tanks and the killing of three people, while the rebels called on civilians to stay away from “vital installations” in the Gulf state. The news raised concerns about energy supplies from the oil-rich region. ING analyst Warren Patterson said these events “further fueled the movement.” the prices. Attention is also drawn to the continuing threat of a Russian invasion of Ukraine. Some analysts say that with new disruptions to Russian gas supplies to Europe, energy prices as well Oil can go up additionally. On the other hand, natural gas prices, which are mainly very high, contribute to the rise in oil prices. It is caused by “the high demand for diesel and fuel instead of natural gas, wherever possible.” According to Piare Schieldrop, an analyst at SIP. And
As for the omicron mutant from Covid-19, which was initially considered a threat to procurement Oil has been found to be less dangerous to demand compared to the previous variables. And
For his part, analyst Hussein Sayed adds: “Only OPEC members and their allies can reduce prices at this stage.” By pumping more oil. And he continues: “Instead, the OPEC Plus countries will most likely stick to their strategy of gradually softening to reduce production Because they are taking advantage of the current high prices.”
The Organization of Petroleum Exporting Countries (OPEC) and its ten allies, including Russia, also announce within the OPEC Plus alliance a month After a month of raising marginally in its production goals and struggling to achieve them, which does not allow to meet needs. And Saudi Arabia announced at the beginning of the year that it was necessary to respect production ceilings agreements. In other words, organs with spare capacity cannot intervene to compensate for the lack of non-organ production Who are able to adhere to the production threshold. And
Joel Hancock of the French financial group Natixis predicted that “the production differentials of OPEC members plus… It is widening, with Russia being the engine of the next big deficit.” According to him, given that the high supply of oil outside OPEC Plus and outside the United States « Relatively weak.” Resorting to US shale oil will be necessary to meet the expected growth in consumption. .
Many analysts now expect crude oil prices to rise above $90 a barrel or even cross $100 threshold. For Hussein Sayed, “what seemed impossible months ago, now has a great opportunity to come true.” . Goldman Sachs analysts, for example, believe that Brent may reach $ 96 this year, and then… $105 in 2023, according to a note published last Monday. And